Photo: Mike Segar / Reuters
Some countries have learned how to earn and wisely invest available funds even during a pandemic coronavirus. To such conclusion the international forum of sovereign wealth funds (IFSWF), excerpts from the study which leads CNBC.
The authors analyzed the investments of sovereign funds from 40 countries over the period from 2017 to start 2020 and came to the conclusion that their size gradually decreases. From 54.3 billion dollars in 2017 it dropped to 35 billion in 2019.
Even before the emergence of the pandemic coronavirus activity of sovereign funds have been faced with many difficulties, the study said. Among them, low liquidity of assets and regulated market IPO (initial offering of shares on the stock exchange).
However, in many of such obstacles have forced Fund managers to look for alternative areas of investment, for example, in the software sector and biotechnology. They were the most profitable, and their products are most in demand in terms of coronavirus.
In 2020, the IT sector has invested three billion dollars in sovereign funds against two billion for all of last year. The authors came to the conclusion that many of the current investments can be described as reasonable and promising.
While IFSWF faced difficulties when calculating the investment, since a considerable part of the operations of sovereign wealth funds due to their secretive classified policy. Sovereign wealth funds created by governments for the investment of available funds. Some countries, including Russia, they are used to invest the windfall from exports of commodities.
Video, photo All from Russia.